Oil, Gas & Petroleum Law

As the East African energy sector continues to evolve, we offer specialized legal consultancy on Exploration, Development, and Production regulations. We help clients navigate national content requirements, sector participation frameworks, and complex licensing processes that govern the oil and gas industry.

Our energy law team advises international oil companies, national oil companies, service contractors, and local content companies operating across the region. We have in-depth knowledge of Uganda's Petroleum (Exploration, Development and Production) Act and related regulations.

We support clients from the earliest stages of exploration licensing through to production sharing agreements, field development plans, and decommissioning, providing practical, commercially-focused legal advice throughout.

What We Handle

• Exploration and production licensing
• Production sharing agreement advisory
• National content compliance
• Regulatory filing and approvals
• Joint operating agreements
• Farm-in and farm-out transactions
• Environmental compliance advisory
• Decommissioning planning

Why Choose M-Smith Advocates

Uganda's oil and gas sector is at a pivotal stage, with major projects such as the East African Crude Oil Pipeline (EACOP) transforming the region's energy landscape. Our energy law team has developed deep expertise in the regulatory framework governing the sector, including Uganda's Petroleum (Exploration, Development and Production) Act, and advises clients on how to navigate it effectively and compliantly.

We have advised service companies, local content entities, and upstream operators, giving us a 360-degree view of the industry's legal dynamics. Our Kampala-based team provides practical, commercially-focused advice that helps energy sector clients protect their interests, meet regulatory obligations, and capitalize on the significant opportunities emerging in the region. Recognised among the best law firms in Uganda for energy sector advisory and one of the leading law firms in Kampala with genuine petroleum law expertise, our lawyers in Kampala provide the guidance that investors across Uganda and East Africa need from the best lawyers in East Africa to navigate this complex regulatory environment.

Uganda's Oil and Gas Legal Framework

Uganda's upstream petroleum sector is governed primarily by the Petroleum (Exploration, Development and Production) Act 2013 and the Petroleum (Refining, Gas Processing and Conversion, Transportation and Storage) Act 2013, together with the Petroleum Supply Act 2003 for the downstream sector. The regulatory authority for the upstream sector is the Petroleum Authority of Uganda (PAU), which was established in 2016 to regulate, monitor, and supervise exploration, development, and production activities. The Ministry of Energy and Mineral Development retains policy oversight, while the Uganda National Oil Company (UNOC) holds the state's commercial interests in the sector.

Petroleum exploration and production in Uganda requires a licence from the PAU, typically structured as a Production Sharing Agreement (PSA) with the Government of Uganda. Under a PSA, the state retains ownership of petroleum resources while the investor bears the exploration risk and recovers costs from production before sharing profits with the state. The allocation of exploration blocks, the terms of PSAs, and the approval of field development plans are all subject to PAU oversight and require careful legal structuring to protect investor interests while maintaining regulatory compliance.

The East African Crude Oil Pipeline (EACOP), a major infrastructure project connecting Uganda's Albertine Graben oil fields to the port of Tanga in Tanzania, has transformed the legal and commercial landscape for the sector. Contracts along the supply chain, from engineering, procurement, and construction (EPC) agreements to logistics, security, and local content compliance frameworks, all require careful legal review. We advise companies seeking to position themselves within this evolving supply chain on the regulatory, contractual, and compliance requirements they must satisfy.

Licensing, Production Sharing, and National Content Compliance

Obtaining a petroleum licence in Uganda involves engaging with the PAU on block allocation, negotiating PSA terms, and securing approval from the Cabinet and Parliament for any Production Sharing Agreements. The negotiation of PSA terms, including cost recovery caps, profit oil splits, royalty rates, and stabilization clauses, requires specialist legal expertise to ensure that the agreement adequately protects the investor over the full lifecycle of the project, which may span decades. We advise upstream operators on the full range of PSA terms and have experience in both the initial negotiation phase and the ongoing contract management obligations that arise during production.

National content requirements under Uganda's petroleum legislation require companies operating in the sector to give preference to Ugandan goods and services and to employ and train Ugandan nationals. Compliance with national content obligations is assessed by the PAU, and non-compliance can result in licence conditions being imposed or, in serious cases, licence revocation. We help energy sector clients develop national content plans, establish compliant local procurement frameworks, and prepare the regular reports required under their licence conditions.

For downstream and midstream participants, including gas processing, refinery projects, and fuel distribution, the regulatory framework involves the Energy Regulation Authority and compliance with the Petroleum Supply Act 2003. We advise on licensing requirements for storage, transportation, and retail distribution of petroleum products, and assist companies with the full range of approvals required to operate lawfully in Uganda's downstream energy market.

Frequently Asked Questions

• What is Uganda's national content requirement for oil and gas companies?

  Uganda's Petroleum (Exploration, Development and Production) Act requires licensees and their contractors to give preferential treatment to Ugandan goods and services and to employ and train Ugandan nationals. We advise on structuring operations to meet these requirements and prepare national content plans for submission to the Petroleum Authority of Uganda.

• How are oil and gas disputes resolved in Uganda?

  Disputes can be resolved through negotiation, mediation, arbitration (domestic or international), or litigation in Ugandan courts. Most Production Sharing Agreements specify international arbitration as the dispute resolution mechanism. We advise on dispute prevention strategies and represent clients in all forms of dispute resolution.

• Can a foreign company bid for oil and gas contracts in Uganda?

  Yes, foreign companies can participate, but must comply with national content regulations and licensing requirements. A joint venture with a Ugandan company is often beneficial, both for regulatory compliance and for building local relationships. We advise on structuring joint ventures and preparing licence applications.

Last reviewed: May 2026, M-Smith Advocates Legal Team